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I currently live and work overseas and am due to take possession of our 4-room BTO flat in August'2014. We were granted a HDB loan in 2011 when we signed the option to purchase. 1. If we pay for the flat in full without any financing, does this mean that the MOP is reduced from 5 years to 3 years? 2. Will HDB ask for evidence of income at the time of settlement before lending us $? Will overseas pay slips suffice - no CPF contribution - be accepted to show that we're able to finance? We have combined income of >$100k annually. 3. I was told by a friend that HDB will wipe out all CPF OA balances (even if it far exceeds the 20% downpayment)and the HDB will finance the rest of the balance. Is this the case? 4. If Qn3. is true, what about the investments made from the OA account? Do these have to be sold?
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1 Answer

Mike Lim
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Afternoon, Whether you finance your unit using hard cash or with mortgage loan, MoP is at 5 years flat. Your HLE which have being assessed during point of application was used as bench mark on how much loan HDB is willing to loan to you upon key collection. At point of key collection, HDB will again request for your income documents to further firm your financial ability for the amount of loan which is to be dispersed. Do note that HDB do also have the ruling that limit combined income ceiling at $10k per month. HDB will definitely clear all your combined CPF OA available prior dispersing the balance as mortgage loan to you. Hence you might want to do some CPF OA investment, prior key collection date. FYI Mike Lim 96929209  m52i@yahoo.com ERA Read More
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